With the case of the Bank of Silicon Valley still hot and (worried) eyes directed towards the ECB meeting that tomorrow will have to decide on a new rise in rates, the “shingle” of Credit Suisse fell on the market with its collapse of more of 20 percentage points to the news that the main shareholder, the Saudi National Bank, has ruled out any intervention if new liquidity is needed. The Ftse lost 3.16% to 25,934 points, with sales hitting banking stocks hard: Unicredit out 7.42%, Intesa Sanpaolo at -6.68%, Bper -5.86%, Banco Bpm -6 .46%. Again among financials, Generali fell 5.06%.
The title of the Swiss giant dropped more than 20%, dragging all the lists of the old continent with it. Frankfurt loses 2.85%, London 2.69% and Paris 3.43%. Milan, where the capitalization of the banking sector is greater, recorded a drop of 3.61%. Unicredit sells 7.45%, Banco Bpm 6.41%, Intesa Sanpaolo 6.66%, Bper 5.90%, FinecoBank 6.92% and Mediobanca. The situation is even worse for two giants such as Societè Generale, which drops more than 11%, and Commerzbank, which leaves more than 10% on the ground.
Unlike the Svb, reports Corriere, “Credit Suisse does not seem to be the object – at least for the moment – of a rush by creditors and depositors to withdraw their exposures. But market confidence is fragile”.
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
